M/S. Kiran Insulated Wire Induslries vs Trans-Fab Power India Private Limited & ...

National Company Law Appellate Tribunal Principal Bench, New Delhi COMPANY APPEAL (AT) (INSOLVENCY) No. 599 of 2021 (Arising out of Order dated 07.07.2021 passed by National Company Law Tribunal, Court-I, Mumbai Bench in I.A. No. 417/2021, I.A. No. 424/2021, I.A No. 578/2021, I.A. No. 896/ 2021, I.A. No. 899/2021, I.A. No. 902/ 2021 in CP (IB) 3641/MB/2018)

IN THE MATTER OF:

M/s R.S Wire Industries, Through Its Proprietor Mrs. Rakhi Merani Having its Office at: H4, Cama Industrial Estate, Walbhat Road, Goregaon East, Mumbai-400063. ...Appellant

Versus

1. Trans-Fab Power India Private Limited A company incorporated under companies Act Having its registered office at Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra-411004 Through its Resolution Professional Mr. Deepak Mohanlal Panpaliya, Gold Ocean Capital, "Stellar Spaces" Office No. 601, 6th Floor, Survey No. 6, Hissa No. 2/1, 2/4, 2/22a, Kharadi, Pune, Maharashtra 411014 ...Respondent No. 1

2. Mr. Rajabhau B. Shinde, Resolution Applicant Having office address at: Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra- 411004 ...Respondent No. 2

3. Mrs. Pratibha R. Shinde Resolution Applicant Having office address at: Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra- 411004 ...Respondent No. 3 -2-

Appellant: Ms. Pratiksha Sharma, Mr. Kunal Kanungo, Mr. Atishay Jain & Mr. Ankit Acharya, Advocates.

Respondent: Mr. Saahil Memon, for R-1. Mr. Pramod Nanasabheb Patil, for RA.

With COMPANY APPEAL (AT) (INSOLVENCY) No. 602 of 2021 (Arising out of Order dated 07.07.2021 passed by National Company Law Tribunal, Court-I, Mumbai Bench in I.A. No. 417/2021, I.A. No. 424/2021, I.A No. 578/2021, I.A. No. 896/ 2021, I.A. No. 899/2021, I.A. No. 902/ 2021 in CP (IB) 3641/MB/2018)

IN THE MATTER OF:

M/s K Copper Products, Through its Proprietor Mr. Kiran S/o. Kanhaiyalal Merani Having its Office at: H4, Cama Industrial Estate, Walbhat Road, Goregaon East, Mumbai-400063. ...Appellant

Versus

1. Trans-Fab Power India Private Limited A company incorporated under companies Act Having its registered office at Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra-411004 Through its Resolution Professional Mr. Deepak Mohanlal Panpaliya, Gold Ocean Capital, "Stellar Spaces" Office No. 601, 6th Floor, Survey No. 6, Hissa No. 2/1, 2/4, 2/22a, Kharadi, Pune, Maharashtra 411014 ...Respondent No. 1

2. Mr. Rajabhau B. Shinde, Resolution Applicant Having office address at: Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra- 411004 ...Respondent No. 2

Company Appeal (AT) (Insolvency) No. 599 of 2021 With Company Appeal (AT) (Insolvency) No. 602 of 2021 With Company Appeal (AT) (Insolvency) No. 603 of 2021. -3-

3. Mrs. Pratibha R. Shinde Resolution Applicant Having office address at: Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra- 411004 ...Respondent No. 3

Appellant: Ms. Pratiksha Sharma, Mr. Kunal Kanungo, Mr. Atishay Jain & Mr. Ankit Acharya, Advocates.

Respondent: Mr. Saahil Memon, for R-1. Mr. Pramod Nanasabheb Patil, for RA.

With COMPANY APPEAL (AT) (INSOLVENCY) No. 603 of 2021 (Arising out of Order dated 07.07.2021 passed by National Company Law Tribunal, Court-I, Mumbai Bench in I.A. No. 417/2021, I.A. No. 424/2021, I.A No. 578/2021, I.A. No. 896/ 2021, I.A. No. 899/2021, I.A. No. 902/ 2021 in CP (IB) 3641/MB/2018)

IN THE MATTER OF:

M/s Kiran Insulated Wire Industries, Through its Proprietor Mr. Kiran S/o. Kanhaiyalal Merani Having its Office at: H4, Cama Industrial Estate, Walbhat Road, Goregaon East, Mumbai- 400063. ...Appellant

Versus

1. Trans-Fab Power India Private Limited A company incorporated under companies Act Having its registered office at Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra-411004 Through its Resolution Professional Mr. Deepak Mohanlal Panpaliya, Gold Ocean Capital, "Stellar Spaces" Office No. 601, 6th Floor, Survey No. 6, Hissa No. 2/1, 2/4, 2/22a, Kharadi, Pune, Maharashtra 411014 ...Respondent No. 1

Company Appeal (AT) (Insolvency) No. 599 of 2021 With Company Appeal (AT) (Insolvency) No. 602 of 2021 With Company Appeal (AT) (Insolvency) No. 603 of 2021. -4-

2. Mr. Rajabhau B. Shinde, Resolution Applicant Having office address at: Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra- 411004 ...Respondent No. 2

3. Mrs. Pratibha R. Shinde Resolution Applicant Having office address at: Flat No. 3, Shriniwas Palace, 40/30 Bhonde Colony, Karve Road Pune Maharashtra- 411004 ...Respondent No. 3

Appellant: Ms. Pratiksha Sharma, Mr. Kunal Kanungo, Mr. Atishay Jain & Mr. Ankit Acharya, Advocates.

Respondent: Mr. Saahil Memon, for R-1. Mr. Pramod Nanasabheb Patil, for RA.

JUDGEMENT

Justice Anant Bijay Singh (J)

1. The Appellant- M/s R.S Wire Industries, Through its Proprietor

Mrs. Rakhi Merani preferred this Appeal being aggrieved and dissatisfied by

the Order dated 07.07.2021 passed by the National Company Law Tribunal,

Court-I, Mumbai Bench in I.A. 417/2021, I.A. 424/ 2021, I.A. 578/ 2021,

I.A. 896/ 2021, I.A. 899/ 2021 & I.A 902/ 2021 in CP (IB) 3641/MB/2018,

whereby, the Learned Adjudicating Authority had dismissed the aforesaid

I.A's in view of the Resolution Plan dated 25.03.2021 stating that nothing

survives in these Applications and hereby the applications stands dismissed.

2. The brief facts of the case are as follows:-

 That the CIRP was proceeded against the Trans-fab Power India

Private Limited vide Order dated 30.08.2019 passed by the Learned

NCLT, Mumbai Bench.

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 In CP (IB) 3641/MB/2018 on 25.09.2018 an application was

filed under Section 9 of the Insolvency & Bankruptcy Code, 2016

(I&B Code) by Amod Stampings Private Limited against Trans-Fab

Power India Private Limited, Corporate Debtor vide Order dated

30.08.2019.

 The Corporate Insolvency Resolution Process (CIRP) was

initiated by Amod Stampings Private Limited against Trans-Fab Power

India Private Limited, Corporate Debtor. Copy of the Order is

annexed as Annexure-A-2 at Page- 37 to 41 in Appeal Paper Book.

 Further, the case of the Appellant is that the (Appellant herein)

used to sold, supplied and delivered to the Respondent copper wire

under their invoice and Corporate Debtor received the goods without

raising any objections rendering part payment of Rs. 84,50,000/-

and availing credit for Rs. 1,48,95,497/- in discharge of its liability

the Corporate Debtor issued cheques which when presented were

dishonoured and under Section 138 of Negotiable Instruments Act,

1882 Appellant issued legal notice and subsequently filed complaint.

During the pendency of the trail Corporate Debtor went into CIRP

proceedings.

 Further, in view of the CIRP order, the Appellant filed its claim

before the Resolution Professional on 29.09.2019.

 Pursuant to several reminders dated 05.10.2019, 05.11.2019

and 05.02.2020, the Resolution Professional adjudicated upon the

said claim and partially rejected the same on 07.02.2020.

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 Aggrieved by the aforesaid rejection, the Appellant herein filed

an application before the Hon'ble NCLT, Mumbai on 16.02.2021 and

without considering the Appeal the Impugned Order dated

07.07.2021 passed by the National Company Law Tribunal, Court-I,

Mumbai Bench in I.A. 417/2021, I.A. 424/ 2021, I.A. 578/ 2021,

I.A. 896/ 2021, I.A. 899/ 2021 & I.A 902/ 2021 in CP (IB)

3641/MB/2018, whereby, the Learned Adjudicating Authority had

dismissed the aforesaid I.A's in view of the Resolution Plan dated

25.03.2021, nothing survives in these Applications and hereby the

applications stands dismissed.

3. Submissions on behalf of the Appellant

 Learned Counsel for the Appellant during course of oral

arguments and in their Written Submissions submitted that the

Impugned Order is unsustainable in law in as much as the same

has been passed in gross ignorance of the fact that the

applications (against rejection of claim by RP) filed by the

Appellants were pending before the approval of the Resolution

Plan and is during the pendency of the said Interlocutory

Applications the Hon'ble Tribunal approved the Resolution Plan

without hearing the Appellants.

 Further, it was submitted by the Appellant that dismissal of this

application filed by Appellant in view of the approval of the

Resolution Plan. It is against this order of cursory dismissal

without any adjudication hence the applications made

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infructuous without any fault of the Appellants who left without

any remedy.

 It was further submitted that the foundation of the Resolution

Plan itself is erroneous and unsteady in as much as the same

fails to take into account the fact that as on the date of the

passage of the said plan, the applications against the rejection of

claim by RP was pending and without considering the I.A's filed

on behalf of the Appellant the Resolution Plan was accepted.

4. Submissions on behalf of the Respondent No. 1:

 Learned Counsel for the Respondent No. 1 during course of oral

arguments and in their Written Submissions submitted that the

NCLT, Mumbai Bench, while passing the Impugned Order had

rightly dismissed the applications filed by the Appellants as

infructuous and not maintainable in view of the approval of the

Resolution Plan on 25th March, 2021.

 Further, the Order approving the Resolution Plan is binding on

the Appellant and cannot be challenged in view of Section 31 of

the Code which provides that once the Resolution Plan is

approved, the same shall be binding on the Corporate Debtor

and its employees, members, creditors, guarantors and other

stakeholders.

 Learned Counsel for the Resolution Professional relied upon the

judgement of Hon'ble Supreme Court, in the case of

'Ghanashyam Mishra and Sons Private Limited vs.

Company Appeal (AT) (Insolvency) No. 599 of 2021 With Company Appeal (AT) (Insolvency) No. 602 of 2021 With Company Appeal (AT) (Insolvency) No. 603 of 2021. -8-

Edelweiss Asset Reconstruction Company Limited' passed in

Civil Appeal No. 8129 of 2019 vide Order dated 13.04.2021.

 Learned Counsel for the Resolution Professional further

submitted that the Appellant did not raise any objection with the

Resolution Professional (Respondent No. 1 herein) regarding

rejection of the balance claim. The claim list was also uploaded

on the website of the Corporate Debtor in March, 2020 and that

has not been objected to the verification of claim with the

Resolution Professional, it is not open to the Appellant to

approach the Hon'ble Bench after 1 year at its own leisure.

 Learned Counsel for the Respondent No. 1 further submitted

that a total claimed amount submitted by the Appellant is

disputed by the Corporate Debtor and the details of which were

not provided by the Appellant in its proof of claim. The proof of

claim does not provide any details and when the debt was

incurred ad on what basis an astronomical amount of

Rs. 5,24,37,556/- was claimed.

 Further the Appellant in Form B with malafide intention did not

bring to the notice of the Resolution Professional that the

Corporate Debtor had already filed two Suits in 2013 against

one of the directors, against the Appellant and K. Copper

Products for an amount of Rs. 3,94,14,853/- and

Rs. 1,18,27,426/- towards damages for short supply of material

and it was further submitted by the Respondent No. 1

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proceedings are currently pending for adjudication before Civil

Court, Senior Division, Pune.

 It was further submitted by the Resolution Professional that the

Appellant had also concealed the fact that the proprietor of the

one of the Appellant had filed a winding up petition against the

Corporate Debtor before the Hon'ble Bombay High Court being

Company Petition No. 328 of 2011 and thereafter, the petition

was dismissed by an order dated 02.02.2016.

 Taking all these facts, it was submitted vide Impugned Order

dated 07.07.2021 the Appeal was dismissed.

 After hearing both the parties and going through the

submissions advanced on behalf of the Respondent No. 1 and

also considered the facts that the Resolution Plan was approved

and also been executed and we do not file any merits in the

Impugned Order accordingly the Appeal is hereby dismissed.

COMPANY APPEAL (AT) (INSOLVENCY) NO. 602 OF 2021:

1. The Appellant- M/s K Copper Products, Through its Proprietor

Mr. Kiran S/o. Kanhaiyalal Merani preferred this Appeal being aggrieved and

dissatisfied by the Order dated 07.07.2021 passed by the National Company

Law Tribunal, Court-I, Mumbai Bench in I.A. 417/2021, I.A. 424/ 2021,

I.A. 578/ 2021, I.A. 896/ 2021, I.A. 899/ 2021 & I.A 902/ 2021 in CP (IB)

3641/MB/2018, whereby, the Learned Adjudicating Authority had

dismissed the aforesaid I.A's in view of the Resolution Plan dated

Company Appeal (AT) (Insolvency) No. 599 of 2021 With Company Appeal (AT) (Insolvency) No. 602 of 2021 With Company Appeal (AT) (Insolvency) No. 603 of 2021. -10-

25.03.2021, nothing survives in these Applications and hereby the

applications stands dismissed.

2. The brief facts of the case are as follows:-

a. That the CIRP was proceeded against the Trans-fab Power India

Private Limited vide Order dated 30.08.2019 passed by the

Learned NCLT, Mumbai Bench.

b. In CP (IB) 3641/MB/2018 on 25.09.2018 an application was

filed under Section 9 of the Insolvency & Bankruptcy Code,

2016 (I&B Code) by Amod Stampings Private Limited against

Trans-Fab Power India Private Limited, Corporate Debtor vide

Order dated 30.08.2019.

c. The Corporate Insolvency Resolution Process (CIRP) was

initiated by Amod Stampings Private Limited against Trans-Fab

Power India Private Limited, Corporate Debtor. Copy of the

Order is annexed as Annexure-A-2 at Page- 37 to 41 in Appeal

Paper Book.

d. Further, the case of the Appellant is that the Appellant herein

used to sold, supplied and delivered to the Respondent copper

wire under their invoice and Corporate Debtor received the

goods without raising any objections rendering part payment of

Rs. 84,50,000/- and availing credit for Rs. 1,48,95,497, in

discharge of its liability the Corporate Debtor issued cheques

which when presented were dishonoured and under Section 138

of Negotiable Instruments Act, 1882 Appellant issued legal

Company Appeal (AT) (Insolvency) No. 599 of 2021 With Company Appeal (AT) (Insolvency) No. 602 of 2021 With Company Appeal (AT) (Insolvency) No. 603 of 2021. -11-

notice and subsequently filed complaint. During the pendency of

the trail Corporate Debtor went into CIRP proceedings.

e. Further, in view of the CIRP order, the Appellant filed its claim

before the Resolution Professional on 29.09.2019.

f. Pursuant to several reminders dated 05.10.2019, 05.11.2019

and 05.02.2020, the Resolution Professional adjudicated upon

the said claim and partially rejected the same on 07.02.2020.

g. Aggrieved by the aforesaid rejection, the Appellant herein filed

an application before the Hon'ble NCLT, Mumbai on 16.02.2021

and without considering the Appeal the Impugned Order dated

07.07.2021 passed by the National Company Law Tribunal,

Court-I, Mumbai Bench in I.A. 417/2021, I.A. 424/ 2021,

I.A. 578/ 2021, I.A. 896/ 2021, I.A. 899/ 2021 & I.A 902/ 2021

in CP (IB) 3641/MB/2018, whereby, the Learned Adjudicating

Authority had dismissed the aforesaid I.A's in view of the

Resolution Plan dated 25.03.2021, nothing survives in these

Applications and hereby the applications stands dismissed.

3. Pursuant to Order dated 30.08.2019, whereby, the CIRP was initiated

against Trans-Fab Power India Private Limited- Respondent No. 1 passed by

the Learned Adjudicating Authority.

4. The Appellant herein on 29.09.2019 submitted the proof of claim in

respect of the CIRP is Rs. 16,95,68,281/- before Mr. Laxman Digambar

Pawar the Interim Resolution Professional, which is annexed as Annexure

A-3 of the Appeal Paper Book and marked at Page- 42 to 50.

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5. Further, case Order dated 07.02.2020 the Respondent, partial claim

of Rs. 79,30,902/- was accepted out of the total claim of the Appellant by

the Respondent.

6. The Appellant on 16.02.2021 aggrieved by the action of the

Respondent filed in I.A. 417/2021 in C.P. No. 3641 (IB)/MB/2018 titled as

M/s K Copper Products v s. Trans-Fab Power India Pvt. Ltd. before the

Learned Adjudicating Authority. The copy of the said Order is marked as

Annexure A-6 of the Appeal Paper Book at Page- 58 to 74.

7. Thereafter, The Appellant filed new Interlocutory Application i.e. I.A.

No. 902/2021 in I.A 417/2021 to include Resolution Applicants a party

respondent.

8. That on 07.07.2021 the Learned Adjudicating Authority was pleased

to dismissed I.A. 417/2021 and I.A 902/2021 in C.P. No. 3641

(IB)/MB/2018 titled as 'K Copper Products vs. Trans-Fab Power India Private

Limited & Ors.' As being infructuous.

Submission on behalf of the Respondent No. 1:

9. Learned Counsel for the Respondent No. 1/ Resolution Professional of

the Corporate Debtor in his Reply Affidavit and also during his of oral

arguments and in his Written Submissions have stated as follows:-

 The Hon'ble NCLT, Mumbai Bench vide Impugned Order dated

07.07.2021 had rightly dismissed the Applications filed by the

Appellant as the same were infructuous and not maintainable in

view of the approval of the Resolution Plan on 25th March, 2021.

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 The Order approving the Resolution Plan is binding on the

Appellant and cannot be challenged in view of Section 31 of the

Code which provides that once the Resolution Plan is approved,

the same shall be binding on the Corporate Debtor and its

employees, members, creditors, guarantors and other

stakeholders.

 Leaned Counsel for the Respondent No. 1 further relied upon the

Judgement of the Hon'ble Supreme Court of India passed in

'Ghanashyam Mishra and Sons Private Limited vs. Edelweiss

Asset Reconstruction Company Limited' passed in Civil Appeal

No. 8129 of 2019 vide Order dated 13.04.2021.

 Learned Counsel for the Respondent No. 1 further submitted that

the Appellant did not raise any objection with the Resolution

Professional (Respondent No. 1 herein) regarding rejection of the

balance claim. The claim list was also uploaded on the website of

the Corporate Debtor in March, 2020. Hence, have not objected to

the verification of claim with the I.R.P, it is not open to the

Appellant to approach the Hon'ble Bench after 1 year at its own

leisure.

 Learned Counsel for the Respondent No. 1 further submitted that

the total claim amount submitted by the Appellant is completely

baseless and unsubstantiated. The entire amount claimed by the

Appellant is disputed by the Corporate Debtor, the details of which

were not provided by the appellant in its proof of claim as to how

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and when the debt was incurred and on what basis an

astronomical amount of Rs. 16,95,68,281/- is claimed.

COMPANY APPEAL (AT) (INSOLVENCY) NO. 603 OF 2021:

1. The Appellant- M/s Kiran Insulated Wire Industries Through its

Proprietor Mr. Kiran S/o Kanhaiyalal Merani preferred this Appeal being

aggrieved and dissatisfied by the Order dated 07.07.2021 passed by the

National Company Law Tribunal, Court-I, Mumbai Bench in I.A. 417/2021,

I.A. 424/ 2021, I.A. 578/ 2021, I.A. 896/ 2021, I.A. 899/ 2021 & I.A 902/

2021 in CP (IB) 3641/MB/2018, whereby, the Learned Adjudicating

Authority had dismissed the aforesaid I.A's in view of the Resolution Plan

dated 25.03.2021, nothing survives in these Applications and hereby the

applications stands dismissed.

2. The brief facts are as follows:-

a. That the CIRP was proceeded against the Trans-fab Power India

Private Limited vide Order dated 30.08.2019 passed by the

Learned NCLT, Mumbai Bench.

b. In CP (IB) 3641/MB/2018 on 25.09.2018 an application was

filed under Section 9 of the Insolvency & Bankruptcy Code,

2016 (I&B Code) by Amod Stampings Private Limited against

Trans-Fab Power India Private Limited, Corporate Debtor vide

Order dated 30.08.2019.

c. The Corporate Insolvency Resolution Process (CIRP) was

initiated by Amod Stampings Private Limited against Trans-Fab

Power India Private Limited, Corporate Debtor. Copy of the

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Order is annexed as Annexure-A-2 at Page- 37 to 41 in Appeal

Paper Book.

d. Further, the case of the Appellant is that the Appellant herein

sold, supplied and delivered to the Respondent copper wire

under their invoice and the Corporate Debtor received the goods

without raising any objections rendering part payment of

Rs. 84,50,000/- and availing credit for Rs. 1,48,95,497/- in

discharge of its liability. The Corporate Debtor issued cheques

which when presented were dishonoured and under Section 138

of Negotiable Instruments Act, 1882 Appellant issued legal

notice and subsequently filed complaint. During the pendency of

the trial, the CIRP proceedings were admitted against the

Corporate Debtor.

e. Further, in view of the CIRP order, the Appellant filed its claim

before the Resolution Professional on 29.09.2019.

f. Pursuant to several reminders dated 05.10.2019, 05.11.2019

and 05.02.2020, the Resolution Professional adjudicated upon

the said claim and partially rejected the same on 07.02.2020.

g. Aggrieved by the aforesaid rejection, the Appellant herein filed

an application before the Hon'ble NCLT, Mumbai on 16.02.2021

and without considering the Appeal the Impugned Order dated

07.07.2021 passed by the National Company Law Tribunal,

Court-I, Mumbai Bench in I.A. 417/2021, I.A. 424/ 2021, I.A.

578/ 2021, I.A. 896/ 2021, I.A. 899/ 2021 & I.A 902/ 2021 in

CP (IB) 3641/MB/2018, whereby, the Learned Adjudicating

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Authority had dismissed the aforesaid I.A's in view of the

Resolution Plan dated 25.03.2021, nothing survives in these

Applications and hereby the applications stands dismissed.

3. The Applicant had immediately acted upon and submitted its proof of

claim within the stipulated time in Form B claiming an amount of

Rs. 3,86,32,690/- before the Respondent- Mr. Laxman Digambar Pawaron

on 29.09.2019. The copy of the said Order is marked as Annexure A-3 of the

Appeal Paper Book at Page- 42 to 51.

4. On 07.02.2020 after constant follow up with the Respondent, partial

claim of Rs. 28,65,778/- was accepted out of the total claim of the Appellant

by the Resolution Professional.

5. Being Aggrieved by the Resolution Professional action, Appellants filed

I.A 578/2021 in C.P No. 3641 (IB)/ MB/ 2018, it titled as 'Kiran Insulated

Wire Industries vs. Trans-fab Power India Pvt. Ltd.' before the National

Company Law Tribunal, Mumbai.

6. Further, an I.A. 896/ 2021 was filed in I.A 578/ 2021 to include

Resolution Applicants as a party respondent.

7. Submissions on behalf of the Respondent No. 1

 Learned Counsel for the Respondent No. 1 in their Reply Affidavit

and in Written Submission submitted that the Hon'ble NCLT,

Mumbai Bench vide Impugned Order dated 07.07.2021 had rightly

dismissed the Applications filed by the Appellant as the same were

infructuous and not maintainable in view of the approval of the

Resolution Plan on 25th March, 2021.

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 The Order approving the Resolution Plan is binding on the

Appellant and cannot be challenged in view of Section 31 of the

Code which provides that once the Resolution Plan is approved,

the same shall be binding on the Corporate Debtor and its

employees, members, creditors, guarantors and other

stakeholders.

FINDINGS

8. The Judgement of the Hon'ble Supreme Court of India passed in

'Ghanashyam Mishra and Sons Private Limited vs. Edelweiss Asset

Reconstruction Company Limited' is applicable to the facts of this case.

The relevant portion of the aforenoted judgement is reproduced as

hereunder :-

"95. That once a resolution plan is duly approved by the Adjudicating Authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan."

9. The Resolution Plan was approved by the Hon'ble NCLT Tribunal,

Mumbai Bench on 25th March, 2021 and further in view of the Judgement of

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the Hon'ble Supreme Court of India in case of 'Ghanashyam Mishra and

Sons Private Limited vs. Edelweiss Asset Reconstruction Company

Limited', whereas, the Resolution Plan was duly approved by the

Adjudicating Authority under sub-section (1) of Section 31, the claims as

provided in the resolution plan shall stand frozen and will be binding on the

Corporate Debtor and its employees, members, creditors, including the

Central Government, any State Government or any local authority,

guarantors and other stakeholders. On the date of approval of resolution

plan by the Adjudicating Authority, all such claims, which are not part of

resolution plan, shall stand extinguished and no person will be entitled to

initiate or continue any proceedings in respect to a claim, which is not part

of the resolution plan.

10. After hearing both Learned Counsel for the Appellant and in view of

the submissions advanced on behalf of the Respondent No. 1 in all three

appeals, we are of the considered view that the Learned Adjudicating

Authority had rightly dismissed the I.A. No. 417/2021, I.A. No. 424/2021,

I.A No. 578/2021, I.A. No. 896/ 2021, I.A. No. 899/2021, I.A. No. 902/ 2021

in CP (IB) 3641/MB/2018 filed by the Appellant in view of the fact that the

approval of the Resolution Plan was accepted on 25.03.2021.

11. So, considering all these facts, we are of the considered view that there

is no illegality in the Impugned Order passed by the Learned Adjudicating

Authority and in terms of the Impugned Order is hereby affirmed.

12. Hence, there is no merits in this Appeal, therefore, all three Appeal

bearing Company Appeal (AT) (Ins.) No. 599 of 2021, Company Appeal (AT)

Company Appeal (AT) (Insolvency) No. 599 of 2021 With Company Appeal (AT) (Insolvency) No. 602 of 2021 With Company Appeal (AT) (Insolvency) No. 603 of 2021. -19-

(Ins.) No. 602 of 2021 & Company Appeal (AT) (Ins.) No. 603 of 2021 are

hereby dismissed.

13. The Registry is directed to upload this Judgement on the website of

this Appellate Tribunal.

14. Registry is directed to send a copy of the Judgement to the National

Company Law Tribunal, Mumbai Bench.

[Justice Anant Bijay Singh] Member (Judicial)

[Ms. Shreesha Merla] Member (Technical)

NEW DELHI 04th April, 2022 Sim

Company Appeal (AT) (Insolvency) No. 599 of 2021 With Company Appeal (AT) (Insolvency) No. 602 of 2021 With Company Appeal (AT) (Insolvency) No. 603 of 2021.